Question
In what kind of organisation is functional structure more suitable and why?
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Answer
Functional structure is suitable for organisations engaged in production and distribution of a single product or a small number of products. It is suitable where it is desired to introduce specialisation in the performance of various functions like production, finance, marketing, etc.
In functional organisational structure, each major function of business is organised as a separate department. In other words, activities are grouped and departments are created on the basis of specified functions to be preformed. It facilitates specialised performance of various functions.
In functional organisational structure, each major function of business is organised as a separate department. In other words, activities are grouped and departments are created on the basis of specified functions to be preformed. It facilitates specialised performance of various functions.
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